Energy-efficiency grant from Maine is a 'win-win' for Jackson's Hardware

Monday

Jul 5, 2010 at 2:00 AM

KITTERY, Maine — Dan Corcoran has seen the light.

Deborah McDermott

KITTERY, Maine — Dan Corcoran has seen the light.

The owner of Jackson's True Value Hardware and Marine on the Route 1 Bypass said his customers and workers have, too, as they walk into a store that these days is noticeably brighter and more inviting, thanks to a brand-new lighting system.

The clincher, said Corcoran with unabashed excitement, is the fact that more than half the cost of the system was picked up by the Maine Public Utilities Commission under its Efficiency Maine program.

And to seal the deal, he has seen his electricity costs decrease by about 30 percent.

"This is a great program, and I don't think many small-business people know about it," said Corcoran. "If they're like me, they're concerned about paying their bills and making payroll, and they probably aren't thinking about taking on any projects right now. But this is such a good deal, they should at least take a look at it."

This is all good news to Michael Stoddard, executive director of Efficiency Maine, because, he said, Corcoran is right. Most small-business owners are busy worrying about the bottom line, but the bottom line is what the business programs at Efficiency Maine are all about.

"The barriers we're battling are lack of information about the program and up-front costs of the work," said Stoddard. "But the objective is to persuade people to upgrade the work to a high-efficiency option. The lower efficiency may be cheaper up front, but in the long run, it's going to cost more money."

Corcoran said he learned about the Efficiency Maine program through a customer, who encouarged him to apply. The store, when he bought it a year or so ago, had old, inefficient lighting that was not replaced when a drop ceiling was installed. Further, he said, the lights didn't always match up with the frosted light panels in the drop ceiling.

The result was a dingy, dark store that he said was not very inviting — particularly in the middle of winter, when the sun sets early.

Corcoran applied for a rebate under Efficiency Maine's Prescriptive Incentives program. Rockingham Electric, a contractor approved by Efficiency Maine, sent an employee to the store to assess the lighting and come up with a detailed plan to remove existing fixtures and replace them with energy-efficient ones.

The Prescriptive Incentives program covers a variety of electricity needs for businesses, including lighting, HVAC equipment, motors and motor drives, commercial refrigeration and agricultural equipment. Businesses can apply for up to $300,000 in incentives in any given calendar year.

Corcoran said the total cost was $5,000, which he did have to pay up front. But when Efficiency Maine reviewed the application, it agreed to provide Jackson's with a cash incentive of $2,749 when the work was completed. And he had the checks in hand to prove it.

"This was truly a no-brainer," Corcoran said.

"This program is our bread and butter," said Stoddard. "With the kind of successes like Jackson's Hardware, word of mouth is spreading. It's a good problem to have."

Stoddard said, of Efficiency Maine's entire budget, 60 percent goes toward its business programs and 40 percent to its residential programs. The program is funded through a "modest surcharge" to customers' electric bills, he said.

But it has received a significant boost from federal stimulus funds and from proceeds of carbon auctions under the Regional Greeenhouse Gas Initiative. Stoddard said its annual budget for both residential and business electric incentive programs has held steady at about $13 million annually. But Efficiency Maine is proposing an increase to $21 million for the upcoming fiscal year.

"Our budget is healthy right now, and we will eventually have more money, so this is a good time to apply," he said, adding that, typically, businesses and Efficiency Maine split the cost of a project 50/50.

Corcoran and Stoddard both agree the proof of the upgrades can be found in the cost savings. For Corcoran, it was immediate.

"I couldn't believe it when the first electric bill came in after the work had been done," said Corcoran, saying the savings amounted to between 30 and 35 percent per month.

"Anything we can do to lower our operating expenses has a favorable impact on our bottom line. This is one investment that has a guaranteed positive return," he said.

Moreover, he can tell you exactly how that reduced electric output translates into good news for the planet. According to information supplied to him by Efficiency Maine, Jackson's has reduced its carbon footprint by more than 18,000 pounds per year, and reduces the sulfur oxide, nitrogen oxide and mercury contamination and avoids more than four tons of coal from being burned each year.

Stoddard said the money Corcoran is saving each month translates into real infusions of money into the local economy. He referenced a report by the engineering firm Environmental Northeast in Rockport, Maine, which looked at the economic impact of energy efficiency on the local economy in all the New England states.

"That 30 percent he's saving each month is staying in Jackson's bank account instead of going to a utility," he said. "Maybe he's able to hire someone part-time as a result, or build his inventory. It has a multiplier effect."

Corcoran said he hopes every small business in southern York County takes advantage of the program.

"Everyone wins," he said. "We have a business that looks better, is more environmentally responsible and ultimately contributes to our profitability. It doesn't get much better than this."

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